Financial Accounting using IFRS - International Student Edition 3/e

Michelle L. Hanlon is the Howard W. Johnson Professor and Deputy Dean for Faculty and Research at the MIT Sloan School of Management. She has taught undergraduates, MBA students, Executive MBA students, and Masters of Finance students. She is the winner of the 2021 Outstanding MBA Teacher Award, the 2020 MIT Teaching with Digital Technology Award, and the 2013 Jamieson Prize for Excellence in Teaching at MIT Sloan. Professor Hanlon's research focuses primarily on the intersection of financial accounting and taxation. She has published research studies in all of the top accounting and finance journals and the leading field journals in taxation in accounting and economics. She has won many awards for her research including the Distinguished Contribution to the Accounting Literature Award from the American Accounting Association, being named a Presidential Scholar by the American Accounting Association, and many others. Professor Hanlon has served on several editorial boards and served as one of the senior editors at the Journal of Accounting and Economics for over 15 years. Professor Hanlon is a co-author on two other textbooks: Financial Accounting, entering its eighth edition, and Intermediate Accounting, entering its fourth edition. She has testified in front of the U.S. Senate Committee on Finance and twice to the U.S. House of Representatives Committee on Ways and Means about tax and accounting issues. She served as a U.S. delegate to the American-Swiss Young Leaders Conference in 2010 and worked as an Academic Fellow at the U.S. House Ways and Means Committee in 2015. She served on the Tax Expenditure Commission for the Commonwealth of Massachusetts and serves on the academic advisory board to the International Tax Policy Forum, Washington, DC. She earned her doctorate degree at the University of Washington. Prior to joining MIT, she was a faculty member at the University of Michigan. She worked at KPMG prior to earning her PhD. Robert Magee s Keith I. DeLashmutt Professor of Accounting Information and Management at the Kellogg School of Management at Northwestern University. He received his A.B., M.S. and Ph.D. from Cornell University. Prior to joining the Kellogg faculty in 1976, he was a faculty member at the University of Chicago's Graduate School of Business. For academic year 1980-81, he was a visiting faculty member at IMEDE (now IMD) in Lausanne, Switzerland. Professor Magee's research focuses on the use of accounting information to facilitate decision-making and control within organizations. He has published articles in The Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics, and a variety of other journals. He is the author of Advanced Managerial Accounting and co-author (with Thomas R. Dyckman and David H. Downes) of Efficient Capital Markets and Accounting: A Critical Analysis. The latter book received the Notable Contribution to the Accounting Literature Award from the AICPA in 1978. Professor Magee has served on the editorial boards of The Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics and the Journal of Accounting, Auditing and Finance. From 1994-96, he served as Editor of The Accounting Review, the quarterly research journal of the American Accounting Association. He received the American Accounting Association's Outstanding Accounting Educator Award in 1999 and the Illinois CPA Society Outstanding Educator Award in 2000. Professor Magee teaches financial accounting to MBA and Executive MBA students. He has received several teaching awards at the Kellogg School, including the Alumni Choice Outstanding Professor Award in 2003. Glenn Pfeiffer is Professor of Accounting at the George L. Argyros School of Business and Economics at Chapman University. He received his M.S. and Ph.D. from Cornell University after he earned a bachelor's degree from Hope College. Prior to joining the faculty at the Argyros School, he held appointments at the University of Washington, Cornell University, the University of Chicago, the University of Arizona, and San Diego State University. Professor Pfeiffer's research focuses on financial reporting and capital markets. He has investigated issues relating to lease accounting, LIFO inventory liquidation, earnings per share, employee stock options, corporate reorganization, and technology investments. He has published articles in The Accounting Review, the Financial Analysts Journal, the International Journal of Accounting Information Systems, the Journal of Applied Business Research, the Journal of High Technology Management Research, the Journal of Accounting Education, and several other academic journals. In addition, he has published numerous case studies in financial accounting and reporting. Professor Pfeiffer teaches financial accounting and financial analysis to undergraduate, MBA, and Executive students. He has also taught managerial accounting for MBAs. He has won several teaching awards at both the undergraduate and graduate levels.

About the Authors Preface Brief Contents Contents Chapter 1: Introducing Financial Accounting Roche Demand for Accounting Information Business Activities Financial Statements Financial Reporting Environment Analyzing Financial Statements Organisation of the Book Appendix 1A: Conceptual Framework for Financial Reporting Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 2: Constructing Financial Statements Canada Goose Reporting Financial Condition Reporting Financial Performance Reporting on Equity Journalizing and Posting Transactions Analyzing Financial Statements Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 3: Adjusting Accounts for Financial Statements Canada Goose Accounting Cycle Analyzing and Recording Transactions Adjusting the Accounts Constructing Financial Statements from Adjusted Accounts Closing Temporary Accounts Summarising the Accounting Cycle Financial Statement Analysis Summary Guidance Answers . . . You Make the Call Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 4: Reporting and Analyzing Revenues and Receivables TomTom Reporting Operating Income Reporting Accounts Receivable Analyzing Financial Statements Earnings Management Appendix 4A: Reporting Nonrecurring Items Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 5: Reporting and Analyzing Inventory VTech Reporting Operating Expenses Inventory Costing Methods Financial Statement Disclosure Analyzing Financial Statements Appendix 5A: LIFO Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 6: Reporting and Analyzing Long-Term Operating Assets Airbus Introduction Property, Plant, and Equipment (PPE) Analyzing Financial Statements Intangible Assets Summary Guidance Answers . . . You Make the Call Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 7: Reporting and Analyzing Liabilities Samsung Electronics Introduction Current Liabilities Long-Term Liabilities Analyzing Financial Statements Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 8: Reporting and Analysing Leases, Pensions, and Income Taxes Unilever Introduction Leases Pensions Accounting For Income Taxes Analyzing Financial Statements Summary Guidance Answers . . . You Make The Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 9: Reporting and Analyzing Shareholders' Equity Inditex, S.A. Introduction Contributed Capital Earned Capital Analyzing Financial Statements Earnings Per Share Appendix 9A: Dilutive Securities: Further Considerations Summary Guidance Answers . . . You Make the Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 10: Reporting and Analysing Financial Investments SoftBank Group Introduction Fair Value: An Introduction Passive Investments Investments with Significant Influence Investments with Control Financial Statement Analysis Appendix 10A: Equity Method Mechanics Appendix 10B: Consolidation Accounting Mechanics Appendix 10C: Accounting for Investments in Derivatives Summary Guidance Answers . . . You Make the Call Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 11: Reporting and Analyzing Cash Flows Qantas Purpose of the Statement of Cash Flows Preparing the Statement of Cash Flows-Operating Activities Preparing the Statement of Cash Flows-Investing and Financing Activities Additional Detail in the Statement of Cash Flows Analyzing Financial Statements Appendix 11A: A Spreadsheet Approach to Preparing the Statement of Cash Flows Summary Guidance Answers . . . You Make The Call Key Ratios Key Terms Multiple Choice Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Chapter 12: Analyzing and Interpreting Financial Statements Vodafone Group Plc Introduction Vertical and Horizontal Analysis Return on Investment Liquidity and Solvency Appendix 12A: Analyzing and Interpreting Core Operating Activities Appendix 12B: Pro Forma Financial Statements Appendix 12C: Measuring Return on Financial Leverage Summary Key Ratios Key Terms Multiple Choice Guidance Answers . . . You Make the Call Discussion Questions Mini Exercises Exercises Problems Cases and Projects Solutions to Review Problems Appendix A: Compound Interest and the Time Value of Money Future Value Concepts Present Value Concepts Using Excel to Compute Time Value Key Terms Exercises Appendix B: Data Analytics and Blockchain Technology Data Analytics Blockchain Technology Summary Video Resources For Tableau Multiple Choice Exercises Problems Index